Most JGB yields fall after US Fed unveils unlimited QE

• The benchmark 10-year JGB futures gained 0.88 point to 152.00, with a trading volume of 14,689 lots.
• The key 10-year cash JGB yield fell 3 basis points to 0.035pc.

Most Japanese government bond (JGB) yields dropped on Tuesday, in line with US Treasuries, on hopes that the Federal Reserve's massive new stimulus measures will support global bond prices and bring down their yields.

The benchmark 10-year JGB futures gained 0.88 point to 152.00, with a trading volume of 14,689 lots.

The key 10-year cash JGB yield fell 3 basis points to 0.035pc.

In its latest mold-breaking step, the Fed offered to buy unlimited amounts of assets to steady markets and expanded its mandate to corporate and municipal bonds.

At the shorter end of the market, the five-year debt yield dropped 3.5 bps to minus 0.110pc, while the two-year yield lost 2.5 bps to minus 0.235pc.

In the superlong zone, the 20-year bond yield fell one basis point to 0.305pc, while the 30-year and the 40-year yields stood flat at 0.435pc and 0.440pc, respectively.